The USD/JPY pair has settled around 105.40 for a third consecutive week, down in the last one amid prevalent risk aversion. An improvement in the risk-related sentiment kept the pair afloat on Friday, as better-than-expected US data pushed government bond yields higher. The yield on the benchmark 10-year Treasury note finished the week at 0.75%. Equities, on the other hand, closed the day mixed and around their opening levels.
Japan will publish this Monday the September Merchandise Trade Balance Total, foreseen at ¥989.8 B, up from the previous ¥248.6 B. Exports in the mentioned month are seen down 2.4%, while imports are expected to have decreased by 21.4%.
The USD/JPY pair is technically neutral-to-bearish, lacking clear directional strength. The daily chart shows that the price is stuck around a flat 20 DMA, although below the larger ones, which gain bearish traction. Technical indicators, in the meantime, head nowhere around their midlines. In the shorter-term, and according to the 4-hour chart, the pair is also neutral, as it settled above its 20 SMA but below the larger ones, all without directional momentum. Technical indicators in this last time-frame, hover around their midlines.
Support levels: 105.00 104.65 104.20
Resistance levels: 105.80 106.25 106.60